EU Parliament against higher diesel taxes

The EU Parliament has spoken out against the suggestion to raise diesel prices, put forward by the EU Commission.

20.04.2012

(CS/dpa) The EU Parliament has spoken out against the suggestion to raise diesel prices, put forward by the EU Commission.

The Commission has proposed to cut the diesel tax privileges, making the price solely dependent on energy content and CO2 emissions. This would see a potential rise of the minimum tax rate from 33 cents to 41.2 cents.

Germany, Luxembourg and the UK had previously announced that they were against the proposal. While the EU Parliament's verdict is not mandatory, the EU Council of Ministers will also have to come to an unanimous decision for the proposal to move forward.

EU Tax Commissioner Algirdas Semeta commented that projections of diesel price hikes had been exaggerated and that the measure was aimed at creating an even footing for the taxation of all sources of energy, from coal and gas to oil and diesel.

While the minimum taxation may rise, the EU does not determine the end price for which diesel is sold. In fact, Semeta added, several EU countries were already above the minimum taxation currently specified by the EU.

Should the plan come to fruition, it is intended to come into action in 2023.